AI projected to contribute $1.5 trillion to Africa’s economy by 2030

Artificial intelligence (AI) is expected to add US$1.5 trillion to the African economy by 2030, if the continent captures 10% of the AI global market.

Nazia Pillay, ad-interim MD of SAP Southern Africa. Portal ERP South Africa. 

Artificial Intelligence (AI) could inject as much as US$1.5 trillion into Africa’s economy by 2030, provided the continent secures just 10% of the global AI market. This bold projection comes from the newly released "Africa’s AI Skills Readiness Revealed" report, published by German software multinational SAP.

Launched in Johannesburg following in-depth research conducted across Kenya, Nigeria, and South Africa, the report anticipates the creation of 230 million new digital jobs across Africa by the end of the decade. But unlocking this potential will depend on a major upskilling effort: more than 650 million people on the continent are expected to need digital training or retraining in the coming years.

SAP’s findings underscore the rapid transformation underway in Africa’s digital economy, which is forecast to grow from 5.2% of GDP in 2025 to 8.5% by 2050. This digital momentum is being propelled by the adoption of emerging technologies such as AI and cloud computing, technologies that are increasingly reshaping business models and labor markets worldwide.

The study, which builds on earlier research conducted in 2022 and 2023, was developed in partnership with research firm Vanson Bourne and captures insights from 100 professionals across both public and private sectors. According to SAP, the goal was to better assess the continent’s readiness to embrace AI, both from a technical capacity and workforce development perspective.

“In our latest report, we find a world transformed by powerful AI and cloud technologies,” said Nazia Pillay, ad-interim MD of SAP Southern Africa. She emphasized the growing urgency among organizations to attract, develop, and retain AI talent, calling the need for AI skills across African markets “universal.”

When asked how SAP is contributing to the upskilling agenda, Pillay highlighted the company’s support for higher education institutions across Africa, noting that SAP is committed to helping universities produce certified AI professionals ready to meet market demands.

While Africa’s AI sector is projected to reach a market value of US$4.92 billion by 2025, representing about 2.5% of the global AI industry, skills shortages remain a key barrier. SAP’s research identifies more than 2,400 AI-focused companies operating across the continent, with 726 based in South Africa, 456 in Nigeria, and 204 in Kenya. However, nine out of ten African businesses report a lack of in-house AI expertise.

In response, around two-thirds of organizations have launched professional development programs with AI specialization tracks, aiming to reskill their workforce and prepare for a more automated, intelligence-driven future.